Towards the Deployment of Artificial Intelligence for Tax Administration in Nigeria: An Ethical and Legal Analysis

The rapid advancement of artificial intelligence (AI) in the 21st century has begun to transform key sectors of the global economy, including taxation. In Nigeria, while the government had acknowledged AI’s potential benefits by establishing initiatives such as the National Centre for Artificial Intelligence and Robotics (NCAIR) in 2020, the country remained at an early stage of AI integration, particularly within its tax administration. This study examined the ethical and legal dimensions of deploying AI in Nigeria’s tax administration. The study adopted a doctrinal research methodology that analysed existing laws, policy documents, and international best practices. The study found that although AI could revolutionise tax processes by enhancing efficiency and accuracy, significant legal and ethical challenges persisted, including data privacy risks, cybersecurity vulnerabilities, lack of transparency, and regulatory uncertainty. Nigeria’s reliance on general statutes such as the Cybercrimes Act, 2024 and the Nigeria Data Protection Act, 2023, without a specific AI regulatory framework, was identified as a major impediment to safe and effective AI adoption. The research recommended the creation of a robust, dedicated legal and ethical framework to regulate AI deployment in taxation, with an emphasis on safeguarding taxpayer rights, fostering innovation, and building public trust. It concluded that timely regulatory intervention was critical to ensure that Nigeria could responsibly leverage AI’s potential in its tax system.